while row tailers like michael coors are killing it but wal-mart isn't it. and why the heck is twitter worth $25 billion if it has no profits. money." ♪ reasons. is [ technical difficulties ]

>> of 2.8% over the third quarter. that is much higher than expected and the fastest growth rate we have seen for the year. the big jump was largely fuelled by businesses restocking their shelves over the summer, but katherine mann says we shouldn't be fooled. >> a think a lot of people are saying this is a good indication for the u.s. economy it will be able to weather the fourth quarter shutdown and so forth, but i'm a little concerned because the growth rate of personal consumption expenditures has been very, very week. the business investment numbers are negative? fact not only did they not grow they fell. >> what is most worrying is the pull back from the consumer who's spending directs two-thirds of all economic activity in the united states. in the three months in september

we only saw personal spending rise by 1.5%. uncertainly out of washington raising interest rates and fairly anemic job growth are all sapping consumer confidence, but one segment is doing just fine. tail. >> reporter: designer handbags to high-end homes wealthy americans are lapping up luxury, fuelling growth at high-end retailers such as michael cores which saw a 31% increase in the sales last quarter. but further down, belts are tightening. wal-mart cut its forecast as its conscious consumer reigns in spending. spending and confidence are increasing in households earning

$90,000 or more, but falling in those earning less than $70,000. >> for middle and lower income families there are two main problems. one is weak job growth and weak wage and salary growth for those who have jobs, and the second thing is weak balance sheets, so that is loss of housing values, and for many families more depth they are comfortable with. >> reporter: the overwhelming majority of american families are still struggling to rebuild their wealth in the weak of the great depression. while 24% will thriving. thriving households own more than three-quarters of america's financial assets, such as stocks where i have sored this year. they have also benefited the most from rebounding house prices. sales of premium new homes accounted for a greaters

percentage of overall sales this spring than homes priced between 150 and $200,000. the imbalance is feeding a vicious circle. consumer spending is the engine of u.s. economic growth, and when the imagine yourty of consumers are stuck in low gear, businesses have less incent live to create more jobs, precisely what is needed to boost income. and while americans who are feeling flush are spending they aren't doing enough of it to make up for those who are cutting back. >> you would need to have a doubling or more than a doubling of spending growth by those very strong families, and that doesn't seem realistic. and it's really a matter of years before we would feel like we're back in a position where people are comfortable, broodly speaking with their financial position. we have a chief economist who says that disposable income growth needs to accelerate at

least 2% for the economy to stay on track. right no it's growing at the lowest rate in 50 years, excluding the worse of the recession in 2008 and 2009. steve joins me now. good to see you. >> thank you. >> i think what patricia reported on is more interesting than whether gdp was up . this economy will only prosper if a fairly brood base of prosperous. >> yes, you see it in every day. the [ technical difficulties ] >> and that when you look at the

competition that the u.s. is facing, and that is really where the problem is, a lot of those good paying jobs that didn't require an enormous amount of locations. >> right. and hence because of these people who were unemployed even though there are job openings in america, and yet we have more than 10 million unemployed because there is a mismatch. >> a lot of the degrees we create in this country are for human advertise. they are for things that don't generate a lot of income on an ongoing basis. history teachers, english professors, those kind of people make good pay, but they don't edge. >> as an economist how do you fix the problem? >> it's actually a global problem. the whole world wants to export

to growth, somebody has to buy this stuff, so we're getting disinflationary pressures. the reality is we really need to have significant changes in the way we deal with things from a tax perspective and from an income perspective and the type of incentives the government provides for education and jobs in this country, and that's not even being talked about. >> and it is not going to be because we tend to focus on simpling issues? >> correct. >> what is your short-term outlook for these numbers? >> the reality is we're stuck here. if you look at the numbers you laid out, consumer,

[ technical difficulties ] 2015. >> i see. steve is the chief economist at mozuho securities. thank you. >> thank you. bird is the word on wall street. the shares almost double on day one, but will the rest of us be tweeting the blues? we'll put twitter's big day in perspective. and the sister of the most famous silicon valley's ceo shares the secret of keeping al jazeera america - a new voice in american journalism - >> introduces america tonight. >> in egypt, police fired teargas at supporters of the ... >> a fresh take on the stories

that connect to you. [[voiceover]] they risk never returning to the united states. >> grounded. >> real. >> unconventional. [[voiceover]] we spent time with some members of the gangster disciples. >> an escape from the expected. >> i'm a cancer survivor. not only cancer, but brain cancer. america tonight next on al jazeera america

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[ technical difficulties ] >> and scored a sweet gain, and sold that stock to a lot of regular folk who saw their new purchase close half the praise. so please ignore all of those headlines that said twitter has a 73% gain on day one. not for you it didn't. all of with an internet company of active users but hasn't made money. to justify $45 a share twitter would have to generate more than $6 billion in annual revenue by 2018. this year's estimate is

projected about 1/10th of that amount, hashtag, omg. the tech heavy nasdaq is up 28% this year, more than the s&p 500, making many people -- [ technical difficulties ] >> hi, ali. >> i heyed out the -- laid out the two possibilities. >> i think the issue is that the fat lady hasn't sung, but she has entered the theater, and at $45 there's no way you can justify the investment except if

you have the time horizon where rip van winkle was asleep. >> people say take a look at amazon and google -- let's take a look at amazon. this is the history of amazon that we're looking at. strong performer, a little bit of a turn back there. let's take a look at google if you can. these are the examples that people cite to me. that is not really a good reason to buy twitter. >> no, because twitter eats by collecting ad dollars. the advertising industry we know how big it is and how fast it grows, and there are a lot of bad folks in the advertising industry that are gaining a lot of share. google and facebook can take all of the growth in the ad industry. i think twitter next year will make a billion dollars, and

maybe three or four years from now, 3 or $4 billion. but that's because it is going to be out of other people's hides, and those other people are strong financially, and they are not going to let that happen. and facebook and google have worked because the advertising has been accountable. the person who is writing the ticket to do the advertising understands that he or she is making something for their money. twitter's advertising at this point isn't accountable. the big guys are casting a fishing rod into the pond but nobody knows whether they are going to get anything or not. so you have the accountability for the rivals. >> right. >> you have the -- basically busman's holiday, buy a lottery ticket if you are doing ad on twitter, and the reality is without any cash flow you cannot justify this price -- the valuation, by is over

$30 billion. >> is there a number that makes sense for you for twitter stock? >> i thought -- based on looking on amazon because sometimes professional investors will give profits. >> yeah. >> i don't know how long the hall pass is going to be, investor sentiment can change at anytime. i don't think this hall pass for twitter is going to last that long. my guess would be two to three years, the

channel -channel -- [ technical difficulties ] >> actually, because now the examinations of what twitter has to actually do to live up to a $45 valuation are greater. what do they have to do? >> i think the thing that not everyone realizes at this point is twitter only has 50 million users notice the united states, and the rest of those are all international. so the problem for twitter is how do you grow that user base and make more money per user over time? and that's where the real value is going to be. now as i have said a number of times, essentially they are trying to get people to stay in the service.

people really know what it is when you see it on tv. you see hashtags and little birds everywhere. but they go to the service, they sign up. they say, okay, they may -- may -may -- -- [ technical difficulties ] >> all of us who first got on to facebook, and now we use it for different purposes. sticky. >> for me personally, i went to the service and i tweeted a handful of time, and then i left it away for sick months but as soon as i started following the right people, and the ceo says once you get into the real time environment where you start seeing thing happens as they happen, take the boston bombing, people were glued to twitter to see the latest things that were coming out of that, right?

but if you don't have that sort of event or thing happening in the moment, then you don't have that sense of immediacy and you don't really get it. >> talk about following the right people. follow mike. thanks for joining us. >> thanks for having me. >> these things definitely connected us >> they say they did it because they were trying to protect my children. they didn't protect my children, they traumatized them. >> fault lines examines why so many native american kids are caught in the child welfare system. >> any time they see a social worker its like seeing a police officer.

the immediate response is, "they're here to take my kids". >> from the indian perspective who sees this in terms of history, this is as about as adversarial as it gets. determining using some sort of subjective interpretation of their policy as to whether or not your particular report was actually abusive, because if it doesn't contain language that specifically threatens you directly or is targeted towards you specifically, they may not consider it abuse. they may consider it offensive. and in that case they just recommend that you block that person. >> i don't want to minimise this, because i mean, there's some really horrible things that are on line, and it's not - it's not just twitter, what has happened through social media and the anonymity of the net is

that you see websites, hate-filled websites targetting all sorts of groups, popping up. there has been a huge number of those that exist as well. >> audiences are intelligent and they know that their

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>> only on al jazeera america. ♪ randy zuckerberg has a career most people would dream about, the older sister of mark zuckerberg, she has been nominated for aenlmy award, and she is the founder and ceo of zuckerberg media. she is a wife, mother, and -- [ technical difficulties ] >> untangling our wired lives which is a book urging us all to take a little time to disconnect, and a children's book "dot." >> randi thank for being here. >> it's so good to be here. >> the ipo for twitter happened today. and we were together on

may 18th, 2012, right -- at the nasdaq for the facebook ipo. fondly. >> how do you look at these things now? now that you have been through facebook and all of the hype, what is your wisdom? >> i think -- if i could tell the employees of twitter one thing, they are building something for the long term. they have a hum vision and a huge mission they are doing. i think it's way too easy to get caught up in the moment to moment fluctuations of the strong price. so hold true to the course and remember they are building something for the long term. >> you write in your book about prefacebook and then your brother asked you to join, and it was run out of a house.

>> yes, it was a small apartment approve this chinese restaurant. and so be there at the nasdaq a year ago with you, and celebrating a billion users who could have imagined that. >> you have facebook in your dna, but you a twitter user? >> i am. >> are you using something we don't even know about? >> instagram is the hot one i am on right now. because i connect with people all over the world and i found through photos that need no translation that's the easiest way to communicate. >> you talk about your brother in your book. what can you tell the world about your brother without causing people to not buy the book. [ laughter ]

>> i tell some funny stories about when we were younger. we were really into star wars, and i definitely give incite into the family. >> and you are a performer. you are a singer. you liked acting. >> i have been phone to grab a microphone from time to time. but, yes, it's interesting, because when -- i look back at what professionals -- what it used to mean to be a professional. you used to have your business identity and then you go home and you can be who you really are at home, but now on social media you don't have that luxury. you really get one identity online, and so we're seeing more of a merging. >> so for my viewers, one of the things your book talks about is sort of the appropriateness of what you do on social media, and we're talking about normal things people do. so as an experiment today, i took the

so-called selfies, photographs of myself on my phone and tweeted them out. and i want to go through a couple of these. here is one -- this is the one where i -- this was the expression on my face when i found out that twitter started trading at $40.10. now let's take a look at another one -- it was raining outside, and i tweeted does this selfy [ laughter ] >> let's put another one up. that's [ technical difficulties ] >> i feel like you could have tweeted out, gosh, can't believe the twitter stock is this high early, but that moment on your

face, it really gives people an incite into who you are, which i think is so great, because that's what people want from television personalities, celebrities, public figures now. theying don't want -- >> analysis. >> right. the reason people go to these social media accounts in the first place is because they want to know who you are. >> you still i hope have facebook stock. the stock is doing quite well. does it cost you to tell people to chill out on social media. >> i'm not telling people to unplug completely. >> sure. >> but i do think that we have gotten to this point where we're so expected to be connected 24/7, answering emails around the clock, we can't even enjoy a dinner with your friends without being in our phones half the time. so something has to change.

the technology getting in the relationships. >> you have done a good job of not letting that happen. you have dot right there. one of your books is "dot." good to see you, my friend. >> thank you. good to be here. >> today on twitter and facebook we have perspecti perspective employer consider your social media presence as a hiring indicator. tell me what you think by tweeting me or leave us a comment on facebook, some great, great comments. final thoughts are on october employment report. to me there is the most important economic number there is. economists are pre dibting between 125,000, and 145,000 net

new jobs were created in october. the average has been 178,000. most economists say we need somewhere above 150 a month. to really start cooking to w gas we need more than 200,000, and both mitt romney and barack obama campaigned they would oversea the create of a quarter million net new jobs a month. bottom line, folks spend money more reliably when they believe they are going to stay employed, get a job, and earn more money next year than they are this year tomorrow we'll talk about the jobs report and what it means for your economic future. i'm ali velshi. thanks for joining us. ♪

welcome to al jazerra america, i am stephanie sy in new york here are the top stories at this hour. 12 million people are in the path of what meteorologists are calling the most powerful typhoon on the planet in decades, it's hitting the central philippines right now with heavy rain and winds up to 200 miles an hour. it's whipping up waves 12 to 15 feet high. there are initial reports of at least three people killed and vast devastation, humanitarian organizes 1 million people have been evacuated. signs of building momentum in negotiations over iran's nuclear program. secretary of state john kersey headed to gentlema geneva to hee talks, thursday an iranian official said an agreement i